POST UTME AAUA 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is facing a downward-sloping demand curve given by Qd = 100 - 2P. If the firm produces 20 units, what is the price elasticity of demand?
A. 0.5
B. 1.0
C. 2.0
D. 3.0
Question 2
A firm's demand function is Q = 100 - 2P, and its supply function is Q = 2P - 10. Find the equilibrium price and quantity.
A. P = 20, Q = 40
B. P = 30, Q = 50
C. P = 40, Q = 60
D. P = 50, Q = 70
Question 3
The government of a country wants to increase the production of a particular good. Which of the following policies would be most effective in achieving this goal?
A. Increa\sing the price of the good.
B. Increa\sing the supply of the good.
C. Increa\sing the demand for the good.
D. Increa\sing the production \costs of the good.
Question 4
Determine the equilibrium price and quantity of wheat in Nigeria, given the following demand and supply functions: Demand: Qd = 100 - 2P, Supply: Qs = 2P - 50. Assume the market is in equilibrium.
A. ₦50, 150 units
B. ₦75, 100 units
C. ₦25, 200 units
D. ₦100, 50 units
Question 5
A country's money supply (M) is given by the equation M = 100 + 0.5Y. If the country's GDP (Y) is 2000, what is the country's money supply?
A. 1000
B. 1050
C. 1100
D. 1150
Question 6
The concept of scarcity is central to the study of economics. Which of the following best describes the concept of scarcity?
A. The unlimited availability of resources to meet unlimited wants.
B. The limited availability of resources to meet unlimited wants.
C. The unlimited availability of resources to meet limited wants.
D. The limited availability of resources to meet limited wants.
Question 7
A monopolistically competitive firm has a demand curve given by P = 100 - Q^2. If the firm produces 10 units, what is the total revenue?
A. ₦900
B. ₦1,000
C. ₦1,100
D. ₦1,200
Question 8
A country imposes a tariff on imported goods. What is the likely effect on its terms of trade?
A. Improvement
B. Deterioration
C. No effect
D. Stagnation
Question 9
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the current output price is p = 50, calculate the firm's maximum profit.
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 10
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its marginal revenue?
A. Increase
B. Decrease
C. Remain the same
D. Become indeterminate
Question 11
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports (X) are 100, imports (M) are 80, foreign investment (F) is 20, and domestic investment (I) is 10, what is the country's balance of payments?
A. 30
B. 20
C. 10
D. -10
Question 12
A firm's demand curve is given by Q = 100 - 2P. If the firm increases its price from $10 to $15, what is the percentage change in quantity demanded?
A. -20%
B. -30%
C. -40%
D. -50%
Question 13
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's income increases by 20%, what will be the new budget constraint?
A. 2x + 3y = 14.4
B. 2x + 3y = 14.8
C. 2x + 3y = 15.2
D. 2x + 3y = 15.6
Question 14
A government in Nigeria is considering implementing a policy to increase the production of wheat. Determine the effect of the policy on the equilibrium price and quantity of wheat in the market, assuming the demand and supply functions are: Demand: Qd = 100 - 2P, Supply: Qs = 2P - 50.
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price remains the same, quantity increases
D. Price remains the same, quantity decreases
Question 15
A firm producing wheat in Nigeria faces the following \cost functions: TC = 100 + 2Q + 0.1Q^2, TVC = 2Q + 0.1Q^2. Determine the marginal \cost (MC) and average \cost (AC) at Q = 50 units.
A. MC = ₦5, AC = ₦6
B. MC = ₦6, AC = ₦7
C. MC = ₦7, AC = ₦8
D. MC = ₦8, AC = ₦9

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